STOCK MARKET BULLISH -- LONG

Keybot the Quant remains long moving into the Tuesday session. The algo is tracking three parameters which are affecting broad market direction; UTIL 480.40 (now at 483.22 creating market bullishness), SOX 462.50 (now at 466.50 creating market bullishness) and VIX 14.28 (now at 14.78 creating market bearishness). Thus, the bulls need to push VIX under 14.28 to signal continued strong upside ahead. The bears need to push either UTIL under 480.40, or SOX under 462.50, to stop the rally and initiate market selling.

For the SPX today starting at 1640, the bulls need to touch the 1645 handle and an upside acceleration will occur which will slice through 1647 resistance and immediately test the strong 1649-1650 resistance. The bears need to push lower to the 1634 handle to accelerate the downside. A move through 1635-1644 is sideways action today. Thus, both bulls and bears need about 5 or 6 handles in their respective direction to accelerate the move in that direction. The S&P futures are +6 at this writing about 3 hours before the opening bell. The bulls are cruising with the algo number 37 points above the signal line and this will increase if the bulls can drop volatility. UTIL 480.40 and VIX 14.28 will dictate broad market direction today.

7/12/13; 10:00 AM EST =

7/8/13; 10:20 AM EST = +35; signal line is -2

7/7/13; 7:00 PM EST = +19; signal line is -3